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Registrar Sued for Holding Domain Names
Domain Names

 

A lawsuit seeking class action status has been filed in the United States District Court for the Central District of California against Network Solutions and ICANN. The suit arises under Network Solutions’ practice of “holding” domain names for a set period of time after a potential registrant searches for the names. If the potential registrant does not immediately purchase the name Network Solutions itself will register the name, and “holds” it for about four days, allowing the potential registrant to register the name at Network Solutions, but preventing a potential registrant from registering the name anywhere else during the four day period.

 

A copy of the complaint is here. The suit seeks injunctive relief, asking that Network Solutions cease the practice, as well as unspecified damages. The complaint seeks to certify a class of:

 

All persons or entities in the United States who searched for the availability of a domain name through Network Solutions and subsequently registered that domain name through Network Solutions.

 

The suit’s first burden will be certification of the proposed class. The Plaintiff makes suitable arguments for typicality of claims, commonality of issues, and numerosity. This means that the class has enough people, all the proposed members of the class are similarly factually situated, and that the legal issues relevant to each person are common to others in the class. A plaintiff must prove all three elements for a court to certify a class action.

 

Even where a class may be certified in this action, no one should expect a check in the mail as a result of this suit. The best possible result for the Plaintiff will likely be an injunction preventing the practice of holding names in the future. More likely, the parties will settle by reaching an agreement out of court, though it remains to be seen if Network Solutions would be willing to entirely eliminate the process without a court order.

 

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